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Requirements 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers use accounting information to help control manufacturing overhead costs? Print Done a Root Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Root Company reports the following cost data for the past year: (Click the icon to view the cost data.) ... Read the requirements Data Table Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate. Budget Actual 7,500 hours 6,600 hours Direct labor hours. = Prede Machine hours.. Requirement 2. Calculate the allocated manufacturing overhead for the past year. Depreciation on salespeople's autos Indirect materials .. Depreciation on trucks used to deliver uniforms to customers Depreciation on plant and equipment Indirect manufacturing labor.. Customer service hotline 7,200 hours 7,000 hours $ 21,000 $ 21,000 $ 49,000 $ 54,000 $ 15,000 $ 13,000 $ 66,000 $ 67,000 S 39,000 $ 40,000 21,000 $ 22,500 Plant utilities 62,000 $ 64,000 Requirement 3. Compute the underallocated or overallocated manufacturing overhead. Ho First calculate the preliminary manufacturing overhead balance using the T-account. Direct labor cost..... $ 72,500 $ 84,000 Manufacturing Overhead Print Done ext Root Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Root Company reports the following cost data for the past year: E: (Click the icon to view the cost data.) Read the requirements Close the under-or overallocated overhead to Cost of Goods Sold by journalizing the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Requirement 4. How can managers use accounting information to help control manufacturing overhead costs? with the budgeted amounts. Managers will also investigate only differences between actual To help control manufacturing overhead, managers compare the actual line item amounts for and budgeted amounts to identify the reasons why actual costs Next